HTC is reportedly in talks to license its name to other manufacturers
In the hope of generating a little extra cash without all the usual costs associated with smartphone production, it’s claimed that HTC is currently in talks with Indian manufacturers Micromax, Lava, and Karbonn regarding a potential licensing agreement.
Once the deal has been signed, the chosen company will be granted permission to manufacture smartphones under HTC’s name. This will then allow the latter to collect royalties for each device sold.
As things stand, the terms of the potential agreement remain unclear. Nevertheless, it seems highly likely HTC will continue to have some input when it comes to designing the devices. The brand may, however, have no say when it comes to internals and pricing.
Speaking of pricing, the popularity of budget and mid-range smartphones in India suggest any devices produced under the licensing agreement will focus on these segments, rather than the premium market. The downside to this is that HTC-branded phones will face tough competition from Xiaomi, Samsung, and Oppo, among others.
As for HTC’s status internationally, there are currently no reports about further licensing agreements outside of India. But considering how well similar arrangements have performed for the likes of BlackBerry, it’s certainly a possibility. Such a move would also cut HTC’s costs drastically while allowing it to focus almost entirely on its VR business.